GRADUATE SCHOOL OF BUSINESS AND MANAGEMENT

MASTER IN BUSINESS ADMINISTRATION

CASE ANALYSIS ON COOLMART, INC., GENERAL

MERCHANDISE

Submitted to:

Dr. May Javero

Submitted by:
Ferrer, Princess Mae

Hipolito, Melody

Hubert , Mark Roger II

Maningat, Ira Alyzza

Tenorio, Ephraim
I. Introduction
CoolMart, Inc., General Merchandise is a retail distribution company that has
experienced significant growth since its humble beginning. Under the leadership of
Mrs. Gloria Manalo, the company has established a successful distribution business,
supplying various customer products to micro and small-scale retail outlets in Metro
Manila and nearby Luzon areas. However, CoolMart faces challenges in terms of
market insights, traffic constraints, and manual processes.

II. SWOT Analysis

Internal Factors
Strengths:
1. Established Brand - CoolMart Inc. has an established brand presence in the
market, which provides a competitive advantage and helps in customer
recognition and loyalty.
2. Product Range - the company offers a diverse range of high-quality products,
catering to different customer needs and preferences.
3. Distribution Network - CoolMart Inc. has built a strong and extensive distribution
network, enabling efficient product delivery to retail outlets.
4. Customer Service - the company is known for its exceptional customer service,
which contributes to customer satisfaction and repeat business.

Weaknesses:
1. Lack of Market Information - CoolMart Inc. lacks comprehensive market
information, making it difficult to make informed decisions and adapt to changing
market dynamics.
2. Limited Coverage - the company's current coverage is limited, restricting its reach
to a narrower customer base and potential growth opportunities.
3. Internal Communication - inefficient internal communication and coordination
may lead to delays and challenges in implementing strategies and initiatives.
4. Skills Gap - the company may lack certain skills or expertise required for specific
areas of the business, potentially limiting growth and competitiveness.

External Factors
Opportunities:
1. Market Research - conducting thorough market research will provide insights into
market potential, customer preferences, and unexplored segments, enabling
CoolMart to identify growth opportunities.
2. Expansion Strategy - with the right market information, CoolMart can develop a
strategic expansion plan to enter new markets, expand its retail coverage, and
increase market share.
3. Technological Advancements - leveraging technology can enhance operations,
improve efficiency, and provide a competitive edge in terms of online sales,
inventory management, and customer experience.
4. Changing Consumer Trends - identifying and adapting to evolving consumer
trends, such as increased demand for sustainable products or online shopping, can
open new avenues for growth.

Threats:
1. Intense Competition - CoolMart faces intense competition from existing and new
players in the market, which can potentially impact market share and profitability.
Economic Factors:
2. Fluctuations in the economy, such as recessions or inflation, can affect consumer
purchasing power and overall demand for products.
3. Legal and Regulatory Environment - adherence to changing regulations,
compliance requirements, and industry standards can pose challenges and impact
business operations.
4. Supplier Reliability - dependence on suppliers for timely delivery of quality
products and availability of raw materials poses a risk if there are disruptions or
inconsistencies in the supply chain.

III. Statement of the Problem

CoolMart needs to conduct comprehensive market research in the metropolitan
area to gather data on consumer preferences, market trends, and competitors. This
will help them expand their market coverage and compete effectively with other
retail chains.

IV. Statement of the Objective

This case analysis seeks the following objective:
CoolMart must conduct thorough market research in the metropolitan area to
understand the size, opportunities, and characteristics of the unorganized retail
market. Monitoring success through KPIs will enable CoolMart to develop a clear
plan for expanding its market coverage.

V. Alternative Courses of Action

Objective 1: Market Research (Alternative Course of Action)
Conduct Comprehensive Market Research: Invest in conducting thorough
market research to gather data and insights on the total market potential and size of
unorganized retail outlets. This can involve primary research methods such as
surveys, interviews, and observational studies, as well as secondary research utilizing
industry reports and data analytics.

Objective 2: Expansion Strategy (Alternative Course of Action)

Targeted Geographical Expansion: Utilize the findings from the market research
to identify untapped markets with high growth potential. Develop a targeted
geographical expansion strategy that focuses on expanding retail coverage in these
areas, considering factors such as population density, consumer behavior, and
competition.
Objective 3: Sales Optimization (Alternative Course of Action)
Customer Segmentation and Targeting: Analyze the market research data to
identify distinct customer segments based on demographics, preferences, and
buying behaviors. Develop targeted marketing campaigns and sales strategies for
each segment to optimize sales efforts and increase customer acquisition.

Objective 4: Customer Satisfaction (Alternative Course of Action)

Enhance Customer Service and Support: Invest in training programs and
resources to improve the customer service experience. Focus on responsiveness,
problem resolution, and personalized interactions to enhance customer satisfaction
and loyalty.

Objective 5: Competitive Analysis (Alternative Course of Action)

Competitor Analysis and Benchmarking: Conduct in-depth competitive analysis
to understand the strengths and weaknesses of key competitors. Identify strategies
and tactics that give competitors an edge in the market and develop
countermeasures to gain a competitive advantage.

Objective 6: Marketing Communication (Alternative Course of Action)

Integrated Marketing Communication: Develop a comprehensive marketing
communication plan that includes both traditional and digital channels. Implement
consistent messaging across various touch points to increase brand awareness,
engage customers, and drive sales.

Objective 7: Performance Measurement (Alternative Course of Action)

Implement Key Performance Indicators (KPIs): Define and track relevant KPIs
aligned with the objectives of the marketing plan. This can include metrics such as
market share, customer acquisition and retention rates, sales growth, customer
satisfaction scores, and competitive positioning.
By considering these alternative courses of action, CoolMart Inc. can address the lack
of market information, expand its coverage, optimize sales efforts, enhance
customer satisfaction, analyze competition, improve marketing communication, and
measure performance effectively. Each solution is designed to achieve specific
objectives and contribute to the overall success and growth of the company.

VI. Analysis
SWOT analysis presenting the advantages and disadvantages of each alternative
course of action based on the provided alternative courses:

Alternative Course of Action 1: Conduct Comprehensive Market Research

Strengths:
  Provides in-depth insights into market potential and size of unorganized retail
outlets.
 Enables data-driven decision-making and informed expansion strategies.
 Helps identify growth opportunities and potential market gaps.
Weaknesses:
 Requires significant investment of time, resources, and budget.
 Relies on the accuracy and reliability of the collected data.
 May involve complexities in analyzing and interpreting research findings.
Opportunities:
 Enhanced understanding of target markets and customer preferences.
 Ability to identify untapped areas for expansion.
 Potential to gain a competitive edge through market knowledge.
Threats:
 Competitors may also invest in market research, reducing potential
advantages.
 Potential challenges in accessing accurate and up-to-date market data.
 Difficulty in keeping pace with rapidly changing market dynamics.

Alternative Course of Action 2: Targeted Geographical Expansion

Strengths:
 Allows strategic expansion into high-growth markets.
 Increases market reach and customer base.
 Enables localized marketing efforts and personalized customer experiences.
Weaknesses:
 Requires thorough market analysis to identify the most viable target
locations.
 Involves costs and risks associated with entering new markets.
 May face competition from established players in the targeted geographical
areas.
Opportunities:
 Potential for increased sales and revenue through market expansion.
 Access to new customer segments and demographic groups.
 Possibility of building strong brand presence in previously untapped markets.
Threats:
 Risks associated with market volatility and economic factors in new regions.
 Challenges in adapting to local market dynamics and cultural nuances.
 Difficulty in establishing efficient supply chains and distribution networks.

Alternative Course of Action 3: Customer Segmentation and Targeting

Strengths:
 Allows customization of marketing efforts for specific customer segments.
 Increases relevance and effectiveness of marketing campaigns.
 Enhances customer satisfaction and loyalty.
Weaknesses:
  Requires robust data analysis and segmentation expertise.
 May involve additional costs in developing targeted marketing materials.
 Potential challenges in reaching a diverse range of customer segments
effectively.
Opportunities:
 Potential for increased sales and conversion rates through targeted
marketing.
 Improved customer engagement and personalized experiences.
 Ability to build long-term relationships with loyal customer segments.
Threats:
 Competition from other retailers targeting the same customer segments.
 Difficulties in identifying accurate and relevant customer segmentation
criteria.
 Risks of neglecting non-targeted customer segments and missing potential
opportunities.

By considering the advantages and disadvantages through the lens of a SWOT

analysis, CoolMart can make informed decisions on which alternative courses of
action align best with their objectives and business capabilities. It's essential to
weigh the potential benefits against the potential challenges and risks associated
with each alternative to develop an effective and strategic marketing plan.

Conclusion
Based on the comparative analysis of the three alternative courses of action, a
decision matrix can be created to evaluate each option based on specific criteria.
Here's a simplified example of a decision matrix for the three alternative courses of
action:

Decision Matrix:
Criteria Market Research Geographical Customer Segmentation
Expansion
Rating Score Rating Score Rating Score

Market Potential High 3 Medium 2 Medium 2

Cost Medium 2 High 3 Low 1
Risk Medium 2 High 3 Low 1
Competitive High 3 Medium 2 Medium 2
Feasibility Medium 2 High 3 High 3
Customer It High 3 Medium 2 High 3
Total 15 15 12
 Legend 3 – High 2 – Medium 1 - Low

Based on the decision matrix, we can analyze the results:

Market Research: This option scores high in market potential and competitive
edge, indicating a strong potential for growth and obtaining valuable insights.
However, it has moderate scores in cost and risk, indicating that it requires a
considerable investment of resources and carries some inherent risks.

Geographical Expansion: This option scores medium to high in market potential

and feasibility, suggesting potential growth opportunities and feasibility of
implementation. However, it has high scores in cost and risk, indicating higher
financial investment and associated risks.

Customer Segmentation: This option scores medium to high in customer impact

and feasibility, suggesting the potential for improving customer satisfaction and
loyalty. It has lower scores in cost and risk, indicating relatively lower financial
investment and associated risks.

Based on the analysis, the decision ultimately depends on CoolMart's specific

priorities, resources, and risk appetite. If market potential and gaining a competitive
edge are paramount, the Market Research option might be the most suitable. If
expanding into new markets is a top priority, Geographical Expansion might be the
preferred choice. On the other hand, if enhancing customer satisfaction and loyalty
are key objectives, Customer Segmentation could be the preferred alternative.

The decision matrix provides a structured framework for evaluating the

alternatives based on relevant criteria, allowing CoolMart to make a more informed
decision aligned with their strategic objectives, available resources, and risk
tolerance.

VII. Plan of action

Objective: Market Research

Activities:

Description Manpower Duration

Define research Marketing Manager, Week 1
objectives and scope Research Team
Identify research Research Team Week 2
methods and tools
Develop research Research Team Week 3
questionnaire or
 interview guide
Conduct primary Research Team Weeks 4-6
research (surveys,
interviews, observations)
Collect secondary Research Team Weeks 4-6
research data (industry
reports, market studies) -
Analyze research data Research Team Weeks 7-8
and derive insights
Prepare market research Research Team Week 9
report

Objective: Geographical Expansion

Activities:
Description Manpower/resources Duration
Analyze market research Marketing Manager, Weeks 4-5
findings for potential Expansion Team
growth areas
Identify target Expansion Team Week 6
geographical locations
based on market
potential
Evaluate feasibility and Expansion Team, Finance Weeks 7-8
costs of expansion into Department
identified locations
Develop expansion Marketing Manager, Weeks 9-10
strategy and action plan Expansion Team
Allocate resources and Expansion Team, Legal Weeks 11-12
secure necessary Department
permits/licenses
Initiate marketing and Marketing Team, Sales Weeks 13-16
promotional campaigns Team
in selected regions

Objective: Customer Segmentation and Targeting

Activities:
Description Manpower / resources Duration
Analyze customer data Marketing Manager, Weeks 2-3
and market research Analytics Team
findings for
segmentation
 opportunities
Develop customer Marketing Manager, Week 4
segmentation criteria Analytics Team
and profiles
Implement CRM system IT Department, CRM Weeks 5-6
or tools for effective Team
customer management
Tailor marketing Marketing Team Weeks 7-9
messages and campaigns
for each customer
segment
Personalize customer Sales Team, Marketing Weeks 10-12
experiences through Team
targeted promotions and
offers
Monitor and analyze Analytics Team, Weeks 13-16
customer response and Marketing Manager
adjust strategies
accordingly

Person in Charge responsibilities:

Marketing Manager: Overall coordination, strategy development, and
monitoring of activities.
Research Team: Conducting market research, data collection, and analysis.
Expansion Team: Identifying expansion opportunities, developing expansion
strategy, and managing resources.
Analytics Team: Analyzing data, deriving insights, and monitoring customer
responses.
Sales Team: Implementing customer targeting strategies and personalizing
customer experiences.
IT Department: Setting up CRM system or tools for effective customer
management.
Finance Department: Evaluating feasibility and costs of expansion plans.
Legal Department: Assisting with permits and legal requirements.

Time Frame:
The time frame provided above is approximate and can vary based on the
company's resources and specific circumstances. It is essential to adjust the timeline
and allocate resources accordingly to ensure effective implementation of the plan.